Data for MicroMatrix Corporation are shown below in the table. The company's fixed expense is $30,000 per month and is selling 2,000 units per month.How much will net operating income increase (decrease) per month if the monthly advertising budget increases by $10000 and the monthly sales volume increases by 100 units?Per UnitPercent of SalesSelling Price$90Variable expenses63Contribution margin27100%7030%Note: Please be sure to adhere to the instructions for numerical responses. If your response reflects a decrease in net operating income, please include a minus sign before thenumber. For instance, if NOI decreases by $100, kindly enter it as -100.00

Computation of the increase (decrease) in net operating income if monthly advertising budget…

Answered: Data for MicroMatrix Corporation are…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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ok ces O'Reilly Incorporated makes and sells many consumer products. The firm's average contribution margin ratio is 22%. Management is considering adding a new product that will require an additional $10,500 per month of fixed expenses and will have variable expenses of $6.5 per unit. Required: a. Calculate the selling price that will be required for the new product if it is to have a contribution margin ratio equal to 22%. Note: Round your answer to 2 decimal places. b. Calculate the number of units of the new product that would have to be sold if the new product is to increase the firm's monthly operating income by $8,500. Note: Do not round intermediate calculations. a. Selling price b. Number of units per unit
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Best Windows is a small company that installs windows. Its cost structure is as follows: Selling price from each window installation $ Variable cost of each window installation Annual fixed costs Tax rate 450 $ 250 $ 175,000 40% Calculate the number of windows Best Windows must install and the revenues needed to earn a target net income of $72,000. *** Finally, calculate the revenues needed to earn a target net income or $72,000. Select the formula labels, then enter the amounts and calculate the revenues needed. Revenue required to achieve tarnet

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